Driven by strong buying in auto, metal, and banking stocks, the early surge saw the Nifty Bank index open above the 60,000 level for the first time ever. The momentum follows a record-setting session last Thursday, where markets touched similar peaks before consolidating.
Key Market Metrics at a Glance
Sensex: Crossed 86,100
Nifty 50: Surpassed 26,300
Nifty Bank: Opened above 60,000 for the first time
Previous Record: Set on November 27, 2025, after a 14-month wait
Sectoral Performance: Autos and Metals Shine
The market rally on Monday showcased clear sectoral trends:
Top Gainers: Auto and metal stocks led the charge. This was supported by strong monthly sales data from major automakers and record-high commodity prices for metals like silver and copper.
Under Pressure: Realty, pharmaceutical, and consumer durable stocks faced selling pressure and traded lower.
What’s Fueling the Rally?
Analysts point to a confluence of domestic and global factors powering the market to new highs:
Strong Domestic Backing: Steady inflows from domestic institutional investors (DIIs) and robust retail participation through SIPs have provided a solid cushion against foreign investor outflows.
Healthy Economic Indicators: India's stable macroeconomic environment, including controlled inflation and strong foreign exchange reserves, continues to boost investor confidence.
Global Optimism: Rising expectations of an interest rate cut by the U.S. Federal Reserve in December have improved global risk appetite, benefiting emerging markets like India.
Expert Outlook: Cautious Optimism Prevails
While celebrating the milestone, market experts advise cautious optimism. They note that after such a sharp upward move, some consolidation or profit-taking is natural.
Technical analysts suggest that for the rally to extend, the Nifty needs to sustain above the 26,330-26,350 resistance zone. On the downside, support is placed near the 26,000 level.
The prevailing strategy recommended for traders is a "buy-on-dips" approach, focusing on sectors showing relative strength.
The Road Ahead
Investor focus now shifts squarely to the Reserve Bank of India's (RBI) monetary policy committee meeting scheduled for December 5. Many economists and institutions, including HSBC, forecast a 25-basis-point rate cut, which could provide further impetus to the markets.
The record-breaking run underscores the resilience of Indian markets, driven by domestic fundamentals even amid mixed global cues. As markets navigate new highs, the actions of central banks and corporate earnings growth will be key determinants of the sustainability of this bull run.
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